Stimulus hope in the US keeps risk appetite high
Equities surge, US Treasury yields lend support to the dollar
The new year began with a sharp sell-off in equities. The Dow Jones Industrial Average tumbled over 1 per cent on Monday. But that was short-lived as the index recovered all the loss thereafter and surged to record highs.
The Democrats winning the run-off elections and gaining control of the US Senate has increased the prospects of getting more stimulus from the new government that will take over later this month. This has overshadowed the riots in Washington to disrupt the election results.